Top 5 Tips for Greensboro First-Time Home Buyers

For people looking to buy their first home right now, Greensboro and the rest of Guilford County offers the best buying environment in the last 40+ years.  Prices and interest rates rates are low, there’s a great selection of homes for sale, and the economy seems to be slowly coming out of it’s funk.  So why does buying a first home still seem like such an overwhelming endeavor for many buyers?  It’s a no-brainer right.

Well…yes and no.  Looking at the big picture it’s easy to conclude that this may be the best time to buy a home in a generation.  On the other hand, it’s still a very large, emotional, and sometimes stressful decision.  For first-time buyers, it’s hard at times to know where to start the process.  The internet is a wonderful informational tool, but it still can’t replace knowledge and experience when it comes to making big decisions.

After helping hundreds of first-time home buyers over the years, a few tips stick out to me as the best ways of improving your chances of having a good experience.  Here’s my top 5.

1) The loan comes first.  Unless you’re paying cash (and I don’t know too many 1st-time buyers who do), you’re going to have to go through the mortgage process.  Get a recommendation for a good mortgage professional before your start looking at homes.  This puts you in a better negotiating position (more like a cash buyer), reduces your stress (when you find the perfect home you know you can afford it), and also allows you time to correct any potential errors on your credit report.  Most lenders will charge nothing for a loan pre-approval, and you can still shop around with other lenders afterward if you like.  It’s a win-win.

2) Be realistic about your budget.  If you’re comfortable and qualified to buy in the $135,000 range, the best way to be unsatisfied is to go out looking at $225,000 homes  Don’t tease yourself.

3) Think resale.  People don’t make money when they sell real estate, they make money when they buy it.  Look at homes with one eye toward what you love and one eye toward what other buyers will pay for down the road.

4) Limit your opinion input.  When you start looking for a first home, one thing you will not find in short supply is people with opinions about where you should live and what type of property you should buy.  These are well meaning individuals, although they are unlikely to help with your mortgage payment.  Smile, nod your head politely, and then make your own decision.  Ultimately the only person who knows your perfect home is you.

5) Don’t let someone else pick your real estate agent.  With the vast majority of real estate being transacted through agents, chances are if you buy a new home you’ll be working with one.  The question is:  Will this person be chosen by chance, by you, or by the seller of the home you’re buying?  Do some research, ask for recommendations, talk to agents about their experience level and service philosophy.  The right agent can make all the difference in your experience purchasing and satisfaction with your new home, so it’s worth making the effort to choose your own.